Analysis Topic: Commodity Markets - Metals, Softs & Oils

The analysis published under this topic are as follows.

Friday, July 27, 2012

Is the Commodities Boom Over? / Commodities / Commodities Trading

By: Puru_Saxena

The world’s economy is passing through a low growth environment and this is in stark contrast to the first half of the last decade, when we had a global boom.  Today, Europe is on the brink of recession, the US economy is growing at only 2% per year and it appears as though China is facing a major slowdown.  Given these circumstances, we are of the view that the prices of natural resources will struggle to retain last decade’s momentum.  

Friday, July 27, 2012

Is Auditing the Fed Positive for Gold? / Commodities / Gold and Silver 2012

By: Vin_Maru

July 25, 2012 should go down in history as the date the Federal Reserve may become fully accountable to the US government. A motion to pass the bill as amended was unanimously approved by the house to require a full audit of the boards of governors of the Federal Reserve System and banks. This will be done by the Comptroller General of the US before the end of 2012 and they are required to issue their report within 12 months of enactment.  The votes in the House in the bill’s passing this was 326 yea votes to 99 nay votes with 7 non votes.  Interestingly enough it was the Republicans that strongly supported this bill with 239 yea and 1 nay vote, while the Democrats voted 88 yea and 98 nay.  

Thursday, July 26, 2012

Apocalypse Ahead, What Disaster Economics Means for Investors / Commodities / Gold and Silver 2012

By: William_Bancroft

A recent FT article about ‘Disaster Economics’ by Gillian Tett caught our attention. We’ve been fans of Ms Tett’s work for a while, especially her excellent book ‘Fool’s Gold’. This article was about the bond markets, but it was some interesting financial history and commentary that caught our attention.

Thursday, July 26, 2012

Keys For the Next Gold Breakout / Commodities / Gold and Silver 2012

By: Clif_Droke

Gold's historic run-up from $250 to nearly $2,000 an ounce in the last 10 years has underlined the long-term value and intrinsic worth of a key asset. It has also provided a fabulous, once-in-a-lifetime investment opportunity for many individuals, not to mention a long-term momentum trade for both retail and institutional investors.

Thursday, July 26, 2012

Is Gold Ready for Run to New All Time High? / Commodities / Gold and Silver 2012

By: David_Banister

Just under two weeks ago I updated my subscribers with a chart pattern on the GLD ETF, and in that update we discussed what to look for to find clues in this GOLD consolidation that has continued from last August-September highs. My theory all along has been that we peaked in a “Wave Three” top at 1900-1920 last fall after a Fibonacci 34 month rally from $681 per ounce. The ensuing corrective patterns are part of a normal “Wave 4” consolidation that works off the sentiment and overbought nature of that wave 3 updraft. Following this consolidation, I fully expect GOLD to continue past the $1900 per ounce area and run to $2300 per ounce or higher in a Wave 5 rally into the summer of 2013.

Thursday, July 26, 2012

Gold and Silver Jump to 3-Week Highs as ECB Chief Draghi Promises to Print Euro's / Commodities / Crude Oil

By: Adrian_Ash

The WHOLESALE-MARKET gold price leapt more than 1% inside an hour in London trade Thursday morning, setting 3-week highs above $1620 per ounce after European Central Bank chief Mario Draghi said "The ECB is ready to do whatever it takes to preserve" the single Euro currency.

"And believe me, it will be enough."

Thursday, July 26, 2012

The Hidden Cost of Peak Oil / Commodities / Crude Oil

By: Money_Morning

Don Miller writes: Most of what you've heard about "peak oil" is wrong.

In fact, there's a hidden cost to peak oil that's very real. And it's coming to a pump near you any day now.

I know you've read the same headlines that I have...how we are going to "frack" our way to energy independence by exploiting shale oil and other unconventional sources.

Wednesday, July 25, 2012

China continues to buy strategic assets / Commodities / China

By: Ian_R_Campbell

As you no doubt know, yesterday China National Offshore Oil Corporation made a $15 billion, 61% premium to market, bid for Nexen Inc.  Nexen’s portfolio includes:

Wednesday, July 25, 2012

Gold and Silver in Deflation / Commodities / Gold and Silver 2012

By: Julian_DW_Phillips

As global growth is being downgraded by the I.M.F. from 3.5% to 3.1% fears that the Eurozone is already in a recession and the U.S. is likely to enter one next year, are growing. As the world becomes more and more familiar with the economic and financial climate investors are realizing that economic life is far from simple and that growth is not something that governments or central banks can turn on or off.

Tuesday, July 24, 2012

Gold Making Gains on Stronger Dollar, AAA-rated Debt "An Endangered Species" / Commodities / Gold and Silver 2012

By: Ben_Traynor

U.S. DOLLAR gold prices fell to $1573 an ounce Tuesday morning in London – a few Dollars above last week's low – as stocks and commodities also traded lower, while US Treasuries were flat and German bunds fell after Germany's credit rating was placed on negative outlook.

Silver prices briefly dipped below $27 per ounce – 1.2% below where they began the week.

Tuesday, July 24, 2012

Anatomy of Future Gold and Silver Price Bubble / Commodities / Gold and Silver 2012

By: Jordan_Roy_Byrne

In recent commentaries we've written about the three phases of a bull market and how and why the final phase evolves as it does. Valuations, sentiment and market structure all explain why markets take a dramatic upward turn in the final phase after relatively stagnant performance in the previous phase. These are the "micro" behind why a bubble emerges in the final phase. Today we want to look at the intermarket driving forces behind the emergence of a bubble.

Tuesday, July 24, 2012

Gold Continues To Move Towards The Financial System / Commodities / Gold and Silver 2012

By: Vin_Maru

It is currently estimated that the largest 110 central banks have 16% of their reserves as gold.  Anyone who follows the gold market knows that many central banks have become net buyers of gold in the last few years, and the pace of accumulation seems to be growing.  While central banks continue to accumulate gold, the misinformed mainstream media are still chanting the “gold is in a bubble” mantra.   What they are not acknowledging is the clear evidence that the highest level of bankers and regulators are proposing that gold become a Tier 1 asset class with zero risk, which can also be used for collateral in financial transactions. 

Tuesday, July 24, 2012

Defining “Intrinsic Value” in Gold and Silver Investing / Commodities / Gold and Silver 2012

By: Dr_Jeff_Lewis

The mainstream financial media touts a variety of 'anti-inflation' investments that can be used to protect wealth against the ravages of inflation. These typically range from buying commodities like oil and coal to more sophisticated instruments like inflation-protected treasuries and annuities.

While such investments may appear to be inflation-proof on paper, none of these investment vehicles have the solid intrinsic value of gold, silver or any of the other precious metals.

Tuesday, July 24, 2012

China Gold and Silver Strategy / Commodities / Gold and Silver 2012

By: Dr_Jeff_Lewis

The Chinese currency the Yuan is still pegged to the U.S. Dollar at a level that undervalues it substantially, provoking criticism of this exchange rate policy. The world still believes that China cannot survive and prosper without the West to fund its development, and so most analysts are focused on a hard landing for China.

Nevertheless, what is really happening is that new currency swaps are forming the backdrop of Chinese metals accumulation and production. In essence, China is gradually amassing the lion’s share of global wealth in the form of hard assets.

Tuesday, July 24, 2012

The Calm Before the Storm, Gold Bullion Will Benefit / Commodities / Gold and Silver 2012

By: Jan_Skoyles

Late last week when reading the World Gold Council’s Gold Investment Statistic’s commentary, we were reminded of when Doug Casey said ‘“inevitable” is not the same thing as “imminent.”’

As we keep mentioning on these pages the financial situation, which has been snowballing for over 40 years, will continue to do so and in the process those who decided to invest in gold bullion will benefit.

Monday, July 23, 2012

U.S. Dollar Danger Threatens Gold as Euro Hits 2-Yr Low / Commodities / Gold and Silver 2012

By: Ben_Traynor

WHOLESALE gold bullion prices fell to $1569 an ounce during Monday morning's London trading – 0.9% off Friday's close – as stocks, commodities and the Euro also traded lower and US Treasuries gained, following news that two Spanish regions plan to ask for bailouts.

Silver bullion fell to $26.88 an ounce – a 1.9% drop on where it ended Friday.

Monday, July 23, 2012

Timid Silver Bugs Could Miss the Next Big Rally / Commodities / Gold and Silver 2012

By: Clive_Maund

Silver investors and speculators are amongst the manic-depressive you can possibly find in the investment world. When they are playing maximum credits on the slots and passing round boxes of cuban cigars and taking out massive loans to buy Ferraris and Lambos you know it's time to watch out. When they retreat into the shadows, only coming out to hurl themselves off bridges and other tall structures, mumbling about the "cartel" as they plummet earthwards, you know it's getting time to buy - and that is the situation we now find ourselves in. In this update we are going to examine evidence which suggests that, despite the fragile looking price pattern, silver is going to turn surprisingly strong in short order, or alternatively, if it does break down, it turns out to be a false move that is swiftly followed by a dramatic recovery.

Monday, July 23, 2012

Gold Shaping Up for a Major Uptrend / Commodities / Gold and Silver 2012

By: Clive_Maund

Most would be investors and speculators in the Precious Metals sector at this time look and behave like the raw recruits at the start of the film An Officer and a Gentlemen - listless and muttering pathetically "This might not be the bottom - it could go down again" - so listen up you 'orrible lot and pull yourselves together - by the time you are done reading this you are expected to have cleaned yourselves up, straightened yourselves out and be ready for action - and insubordination will not be tolerated.

Monday, July 23, 2012

SILVER: A Metal of Sunken Treasure and Champions / Commodities / Gold and Silver 2012

By: Eric_McWhinnie

Earlier this week, Odyssey Marine Exploration, a world leader in deep-ocean shipwreck exploration, announced it successfully recovered approximately 48 tons of silver bullion from the SS Gairsoppa. The British ship was torpedoed by a German U-boat and sank in three miles of water off the coast of Ireland during World War II. Despite the silver being submerged for 71 years, it is still a highly prized discovery as the precious metal has appreciated in value.

Monday, July 23, 2012

Crude Oil Prices Heading For A Fall / Commodities / Crude Oil

By: Andrew_McKillop

The week ending 20 July had vintage scenes from the 2008 epoch, as oil boomers bid up prices with such gusto they were able to grab 3%-a-day rises, midweek, but by weekend the cold chill of reality was trmming their sails. Although this was a vintage spectacle for a global oil market where the biggest brokers, bankers and traders both need and want higher oil prices, oil prices are set on greasy skids, oiled by a slew of so-called fundamentals. These include stubbornly slowing world demand, growing stocks, OPEC overproduction, increasing NOPEC output, large new finds of shale oil and stranded "greasy gas" able to yield NGL output, and oil's declining share in the global energy mix.